How does portfolio management structure investments of social landlords in reality?

The position of the social rented housing sector in the Netherlands has undergone considerable changes due to deregulation and reduction of subsidies. Social landlords have to stand on their own two feet more than they were used to in the past. It can be assumed that these developments lead to a more professionalised management of the housing stock, including the formulation of portfolio strategies and the use of methods to relate these strategies to investment decisions. Derived from strategic planning theory, planning models have been developed to facilitate this process. However, earlier research indicates that the translation of portfolio strategies into concrete investments is either absent or is weakly embedded in the organisation. The models based on strategic planning theory are either not applied or, if they are, do not reflect the way in which investment decisions about the housing stock are made. In this paper, we concentrate on the relationship between the portfolio management and actual investments of individual landlords. The main question is, to which extent actual investments of social landlords can be derived from their formal policies. Preliminary results are presented from four social landlords, which belong to a selection for a case study that is currently carried out. Based on these results, we outline a planning model that may better describe the reality of investment planning by Dutch social landlords.